Quote:Supply and demand are what was being discussed. If you give people a pile of money to spend on something, the demand goes up.


 

My point was that your food stamp analogy doesn't invalidate the claim that Medicare caused the price of medicine to skyrocket, because they are two different forms of subsidy. While food stamps may be a factor in the increased price of food, the requirement to choose between foods limits the effect. If Pepsi raises their prices some people will switch to Coke and use the savings to avoid not being able to afford Cheerios. Food stamps come in a limited amount each month. That's not the case with medical costs. You don't have to forego one procedure by paying the full price for another.


 

You may be right that Medicare wasn't to blame, or only partly to blame. 
But food prices vs. food stamps is not a valid comparison. I personally agree with Eric that insurance is the biggest factor. Health insurance may have been available before 1965, but employer-sponsored health insurance became standard about that time. The government giving tax breaks to employers but not to individuals amplified the problem.